Rio Tinto has announced its 2024 financial results which show an underlying EBITDA of US $23.3 billion despite there having been an 11% drop in the price of iron ore. Rio Tinto´s Chief Executive, Jakob Stausholm, said: “We continue to build on our momentum with another set of strong operational and financial results. With underlying EBITDA of $23.3 billion and operating cash flow of $15.6 billion, we are increasing our investments to underpin our plans for a decade of profitable growth. We are reporting underlying earnings of $10.9 billion, after taxes and government royalties of $8.2 billion, and a healthy return on capital employed of 18%.

“Our strong balance sheet enables us to pay a $6.5 billion ordinary dividend, maintaining our practice of a 60% payout, the ninth consecutive year at the top end of our payout range, as we continue to invest with discipline,” he added.

Mr Stausholm said that, as part of the company´s focus on Best Operator, it aims to safely and sustainably realise the full value of its assets, through its Safe Production System (SPS). He pointed out that Rio Tinto´s operational performance is improving. In 2024, it delivered over 1% production growth and a 3% increase in sales volumes. This was done on both on a copper equivalent basis (based on long-term consensus pricing), and by the end of the year the company had commenced deployment of SPS at 31 (about 80%) of its sites. In 2024, Rio Tinto´s Scope 1 and 2 emissions, on an equity basis, were 30.7Mt CO2e (33.9Mt4 adjusted emissions in 2023). This is 14% below its 2018 baseline of 35.7Mt CO2e.

“We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March. We will remain disciplined in the short, medium and long term, while paying attractive returns to shareholders,” said Mr Stausholm.